EURUSD

Upside: DP and UTL of descending channel (hourly chart)

Ok now the time has come to explain something about indicators to all of u indicator followers.

Ok, first of all I dont believe in indicators. My primary method has always beenreading PA. All I need is fibos, trendlines, swing points, murrey math levels etc..

I created Black Widow system that is supposed to save time. I always analyze trend before making an entry. That analysis can take some time. With Black Widow that time is saved. Moreover Black Widow is compatible with PA trading and it should confluence with it.

There are some indicators which should replace PA reading entries. Those are EMAs+RSI combined along with some custom indicators coupled with MM levels.

To be honest I dont trade that system. The system I have created is easy to mistake if I dont follow my proven PA trading. I have 2 monitor setups. On a first monitor there is a professional chart with fibos, swings etc...(the ones I have posted lately) and the other is Black Widow chart which is mostly based on indicators I think CAN be useful. What happens if those charts collide?

I ALWAYS TRADE BASED ON PA CHART w/o making any excuses to Black Widow. If they show the same even better.

Moreover most of my successful trades are made on swings. Thats how professionals trade. Thats how i have been taught. Black Widow is an attempt to make my own system based on PA trading coupled with MM levels, but the engine that makes it running is called PA trading or trading on support and resistance.

Why am I so sceptical about indicators? Take for example famous STOCHASTIC indicator. What does it say? If the price is above 80 level it will drop soon and vice versa for 20 level.

Indicators are mathemathical formulas based on price and time. They try to predict future moves. Its useless and counter productive. It brings no benefit. Over trillion dollars are traded every day. The biggest economical forces EU and US trade TRILLION of dollars EVERY DAY. DOES anyone believe that market value of these 2 strongest economies in the world is gonna depend of those lines.
Does anyone believe that if the silly blue line says "ITS TIME TO SELL" the value of those currencies is gonna be moving accordingly to what it says?
If PA wants to go up it WILL and I repeat it WILL go up no matter what STOCHASTIC says.

You all- indicator followers trade based on faith and thats why u lose money. Thats why U will constantly be losing money if u FOLLOW the indicators. There are couple of them that are proven to be useful. I cannot say SMA is an indicator. By indicator I mean those indicators that try to PREDICT future movements and wish that u FOLLOW them. There are many of those sold on the internet for 97$. THOSE ARE ALL SCAMMERS.

Professional traders DONT use indicators or at least those indicators are minimal. Momentum, OBV sometimes MACD is enough.
Why do people use indicators? They have FAITH in those. Trading is not about faith its about PA, charts and setting those movements based
on PA. People dont want to think. They want to follow. I can say that TRADING is a PROFESSION and its not meant to be easy. Imagine a 5 year old child sitting next to a computer and trading. He can do that. He can trade. He can follow silly lined indicator ( even crossovers) and LOSE the money.
If the trading is meant to be easy everyone would be millionairs? How many of u indicator followers are millionairs? Are u making millions because MACD or STO are saying- enter now? Nooooo. Im sure u dont. Im sure u are reading this and ur are quite angry because Im speaking the truth. The truth aches. It gives pain. But from pain u learn.

Trading is a profession, and you need to UNDERSTAND your profession. Even if u trade just for a few cent more try to UNDERSTAND it, not to follow silly lines and indicators.

T

i took care of it

may be a risk at this level, but i'm short with a very tight SL based on the hourly chart...

Nice post T. I agree 100% as I dont' use indicators either, just a solid understanding of price action, a couple of ema's for direction and support/resistance levels. The rest is solid money management, and when I'm in a trade, strong position management since I trade multiple positions every time.
Thanks for sharing,
Alex G.

Channel is broken, waiting for the retrace then going long.

long @1.3795 SL: 1.3760 TP:1.3840

Good night/day

T@rantula!

Nice

Our definitions of "broken" are very different. Adding shorts here...

It just cracks me up when I see a noobie come in here and "declare" that the euro is going up to such and such, or going down to such and such.

New traders just don't know what they don't know, and instead of mouthing off and getting foot in the mouth disease, they should just read and listen to the more experienced traders here and hope they can absorb some knowledge and become good at the business.

Most indicators are a fallacy, and those systems that say buy the green arrow or sell the red arrow are a joke. But that's ok, those guys who fall for them are keping my lifestyle that of and some others here.

My 2 pips worth.

Alex G.

nice chart

I can't agree more, analysis and logic are created for a reason and Forex business is not gambling it is pure learning and hard work.

Koudos to you T

Alex, a newbie poster doesn't necessarily mean a newbie trader - if you were referring to my post I will refrain from posting here in the future, thanks for your kindness...

careful on the sells... this was being bought then marked down all day

I would NOT be surprised to see eu back at 4050 by end of the week

I'm following the exact same channel

LOL!

I was thinking that it would go down to around 1.3750 and possibly as low as 1.3733 tonight and then up to 1.4040-50 possibly by tomorrow night, although that is more than the daily range, but things just have not been very normal.

Jeeze F-ing broadband, contract getting cancelled 1st thing tomorrow...

Just be happy that it is your broadband and not your electrical service which is the problem. I would love to fire my electric provider but there is no other. I am truly tired of unexpectedly losing electricity for a few minutes to 10 hours.

Thanks Malcolmb... you know me though, got my stop with 150 or so pips locked in already.

I actually would be extremely surprised to see us up at 1.4050 by the end of the week, but I'm aware that it could happen.